Shop Floor Lot-sizing and Scheduling with a Two-stage Stochastic Programming Model Considering Uncertain Demand and Workforce Efficiency

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2017-07-14
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Li, Yihua
Hu, Guiping
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Hu, Guiping
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Industrial and Manufacturing Systems Engineering
The Department of Industrial and Manufacturing Systems Engineering teaches the design, analysis, and improvement of the systems and processes in manufacturing, consulting, and service industries by application of the principles of engineering. The Department of General Engineering was formed in 1929. In 1956 its name changed to Department of Industrial Engineering. In 1989 its name changed to the Department of Industrial and Manufacturing Systems Engineering.
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Industrial and Manufacturing Systems Engineering
Abstract

Efficient and flexible production planning is necessary for the manufacturing industry to stay competitive in today’s global market. Shop floor lot-sizing and scheduling is one of the most challenging and rewarding subjects for the management. In this study, a two-stage stochastic programming model is proposed to solve a single-machine, multi-product shop floor lot-sizing and scheduling problem. Two sources of uncertainties are considered simultaneously: product demand from the market, and workforce efficiency, which is the major contribution of this study. The workforce efficiency affects the system productivity, and we propose different distributions to model its uncertainty with insufficient information.The model aims to determine optimal lot sizes and the production sequence that minimizes expected total system costs over the planning horizon, including setup, inventory, and production costs. A case study is performed on a supply chain producing brake equipment in the automotive industry. The numerical results illustrate the usefulness of the stochastic model under volatile environment, and the solution quality is analyzed.

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This is a manuscript of an article published as Li, Yihua, and Guiping Hu. "Shop Floor Lot-sizing and Scheduling with a Two-stage Stochastic Programming Model Considering Uncertain Demand and Workforce Efficiency." Computers & Industrial Engineering (2017). Posted with permission.

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Sun Jan 01 00:00:00 UTC 2017
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